When Does KDP Pay
Are you an author who uses Kindle Direct Publishing (KDP) to self-publish your books on Amazon? If so, you may be wondering when you’ll receive your royalty payments. KDP pays royalties monthly, but the exact timing depends on several factors. Let’s take a closer look at when you can expect to get paid.
Royalties for sales made through Amazon marketplace are paid approximately 60 days after the end of the month in which the sale was reported. For sales made through Expanded Distribution, the payment schedule is approximately 90 days after the end of the month in which the sale was reported. Keep in mind that you’ll only receive payment if you meet the minimum threshold for payment, which varies by currency and payment method. To receive your royalties, you’ll need to set up your bank account information in your KDP account.
KDP Payment Schedule
If you are a self-published author on Amazon’s Kindle Direct Publishing (KDP), you may be wondering when you will receive your royalty payments. KDP has a payment schedule that is based on the marketplace in which your book is sold. In this section, we will cover the KDP payment schedule and the minimum payment threshold.
Monthly Payments
KDP pays royalties monthly, approximately 60 days after the end of the month in which the sales were made. For example, if your book sells in January, you will receive payment for those sales in March. This delay is because KDP needs time to calculate the royalties and ensure that the sales are legitimate.
Minimum Payment Threshold
KDP has a minimum payment threshold for each marketplace. This means that you will only receive payment when your royalties exceed a certain amount. The minimum payment threshold varies by marketplace and payment method.
For example, the minimum payment threshold for wire transfer and check payments in the United States is $100, while the minimum payment threshold for EFT (Electronic Funds Transfer) payments in the United States is $10. If your royalties do not exceed the minimum payment threshold, they will be carried over to the next payment period.
It is important to note that KDP may withhold payment if there are any issues with your account, such as tax or banking information that needs to be updated. In this case, KDP will notify you by email and provide instructions on how to resolve the issue.
In conclusion, KDP pays royalties monthly, approximately 60 days after the end of the month in which the sales were made. The minimum payment threshold varies by marketplace and payment method, and KDP may withhold payment if there are any issues with your account. It is important to keep your account information up to date to ensure timely payment of your royalties.
Payment Methods
KDP offers two payment methods to authors and publishers: Electronic Funds Transfer (EFT) and Check. Here’s what you need to know about each option:
Electronic Funds Transfer (EFT)
EFT is the fastest and most convenient way to receive your royalties. With EFT, your payments are deposited directly into your bank account. You can set up EFT by adding your bank account information in your KDP account. To do so, follow these steps:
- Log in to your KDP account.
- Click on “Account” and then “Payment Information.”
- Click on “Add EFT information” and enter your bank account details.
Once you’ve set up EFT, you’ll receive your payments automatically. EFT payments are made approximately 60 days after the end of the month in which the sale was reported.
Check
If you prefer to receive payments by mail, you can choose to receive a check. Check payments are sent to the address listed in your KDP account. To ensure that you receive your check on time, make sure that your payment address is up to date. Check payments can take up to 30 days to arrive after the payment date.
To update your payment address, follow these steps:
- Log in to your KDP account.
- Click on “Account” and then “Payment Information.”
- Click on “Edit” next to your payment address and make any necessary changes.
Keep in mind that there is a minimum payment requirement for both EFT and check payments. If your royalties do not meet the minimum payment threshold, they will be rolled over to the next payment period. You can check your payment history in your KDP account to see if you have any outstanding payments.
Tax Information
As a KDP author, it is important to understand the tax implications of your sales. Here is some information to help you navigate the tax requirements for KDP.
Tax Forms Required
Amazon requires all publishers, including non-profit or tax-exempt organizations, to provide valid taxpayer identification to comply with U.S. tax reporting regulations. As a KDP author, you will need to provide tax information before you can receive your royalties.
The tax forms required will depend on whether you are a U.S. person or non-U.S. person. U.S. persons will need to provide a valid U.S. Taxpayer Identification Number (TIN), such as a Social Security Number or Employer Identification Number. Non-U.S. persons will need to provide a valid Foreign Taxpayer Identification Number (FTIN) or other applicable tax identification number.
Tax Withholding
Tax withholding is the process of deducting taxes from your royalty payments. The amount of tax withholding will depend on your tax status and the tax treaty between your country and the United States.
If you are a U.S. person, Amazon will not withhold taxes from your royalty payments. However, if you are a non-U.S. person, Amazon may be required to withhold taxes from your royalty payments. The amount of tax withholding will depend on the tax treaty between your country and the United States.
To ensure that you are not overpaying taxes, it is important to consult with a tax professional who is familiar with the tax laws in your country and the United States.
In conclusion, understanding the tax implications of your KDP sales is important to ensure that you are complying with U.S. tax reporting regulations. By providing the necessary tax information and consulting with a tax professional, you can ensure that you are not overpaying taxes and receiving your royalties in a timely manner.
Payment Reports
If you want to keep track of your KDP payments, you can generate payment reports. These reports provide you with a detailed breakdown of your payments, including the sales period, payment date, and payment method.
Generating Payment Reports
To generate a payment report, follow these steps:
- Log in to your KDP account.
- Click on the “Reports” tab.
- Select “Payments” from the drop-down menu.
- Choose the payment period you want to view.
- Click on the “Generate Report” button.
Once you’ve generated the report, you can download it in CSV format for your records.
Understanding Payment Reports
Payment reports can be a bit confusing, but they provide you with valuable information about your KDP payments. Here are a few things to keep in mind when reading your payment report:
- Sales period: This is the period during which your sales were made. For example, if you sold books in January, your sales period would be January.
- Payment date: This is the date on which your payment was issued.
- Payment method: This is the method by which you received your payment. You can choose to receive payments via electronic transfer or check.
- Gross sales: This is the total amount of money you earned from sales during the sales period.
- Returns and allowances: This is the amount of money you refunded to customers during the sales period.
- Net sales: This is the amount of money you earned after returns and allowances have been deducted.
- Royalty: This is the percentage of net sales that you earn as your royalty.
By understanding your payment reports, you can keep track of your earnings and make informed decisions about your KDP account.